I am not totally sure but I get the impression that Google's pagerank is based on links with the domainname in the URI. So relative links would be an issue. For example: /about-me
The problem is that when using the absolute link for referring to posts, it also appears as trackback in the comments. This is of course something which can be changed using a special script/plugin.
Does anyone have more information about this subject? I think PageRank is most important but it's also very hard stuff. Main thing I want to know: does Google want absolute URI's for PageRanking?